The FCA has published a policy statement on Chapter 7A of the Client Assets sourcebook (CASS) and the special administration regime review which summarises feedback the FCA received to its January 2017 consultation on changes to CASS and includes the final rules which came into effect on 26 July 2017. The new rules are intended to speed up the distribution of client assets, and reduce the market impact in the event of an investment firm failure.
The FCA has also published a consultation paper on minor amendments to CASS. The FCA proposes to change CASS to permit the deposit of an appropriate portion of client money in an unbreakable deposit of a maximum of 90 days (the current limit is 30 days) subject to certain conditions outlined in the consultation paper.
The FCA has invited comments by 1 November 2017.
Following its recommendations regarding the protection of client assets in 2014, IOSCO has published a final report on its thematic review of the progress participating jurisdictions have made in adopting legislation, regulation and other policies relating to the protection of client assets.
IOSCO found that the majority of participating jurisdictions have generally adopted a client asset protection regime described by its recommendations.